How Data and AI are Transforming the Dairy Industry for Tomorrow

As we stand on the cusp of this digital revolution, it is crucial for dairy producers to embrace change, prioritize data accuracy and leverage technology effectively.

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(iStock/Lori Hays)

Data’s role has become increasingly vital across industries, and dairy is no exception. Transparency and globalization have ushered in a new era where producers are increasingly reliant on data-driven decisions to enhance profitability and sustainability. As Rosa DePriest, a dairy software support specialist with Valley Ag Software (VAS), aptly stated during a recent VAS webinar, “Your herd’s data is the foundation for informed decision-making across every aspect of your dairy.” However, the value of data is only as strong as its accuracy and completeness, raising important questions about data entry practices.

Data Stewardship
The concept of data stewardship, like land stewardship for a farmer, involves careful supervision and management of data. It’s essential producers determine who is responsible for ensuring data accuracy, securing data environments and maintaining hardware efficiency. Without robust stewardship, data mishandling can result in ineffective analysis and decision-making, much like an unskilled driver handling a Ferrari.

DePriest shares tips for overcoming common challenges in data entry and analysis. This all adds to the ability to leverage your herd’s data to optimize your bottom line.

Importance of Accurate Data
In herd management, not all data is created equal. Producers must differentiate between raw, inaccurate data, which may arise from misidentifications or transcription errors, and incomplete data that can undermine reporting — like neglecting to report a calf as DOA. The goal is to maintain good dairy data, as it provides the foundation for sound decision-making and improvements on the farm.

Three Pillars of Good Dairy Data
1. Tools and Technology: Choosing the right technology is crucial. From Dairy Comp servers to cloud solutions like the Pulse platform, using advanced systems allows producers to access, manage and interpret data anywhere.

2. People: The right team with the proper tools is vital. Training staff — whether as herd viewers, data entry specialists or data analysts — and strategically assigning roles ensures efficient operation.

3. Consistent Processes: Establishing consistent practices helps maintain data integrity and maximize tool effectiveness. This is as crucial as combining workforce skills with the right technologies.

Real-Life Technological Transformations
Iowa dairy producer James Vander Waal exemplifies how leveraging technology can boost efficiency in dairy farming. Managing an operation that milks nearly 1,600 cows outside Sioux Falls, Vander Waal humorously admits to his tech affinity with the phrase, “I guess I kinda am.”

About seven years ago, Vander Waal spearheaded a technological transformation on his farm, installing SenseHub Dairy collars to track cows’ heats, along with sort gates and milk meters. This streamlined his operations significantly.

Last year, after a calf feeder quit, Vander Waal tried his hand at calf care, realizing the challenge of quickly assessing over 350 calves. Investing in SenseHub Dairy Youngstock simplified this daunting task and reassured him of its worth.

“Then, I tried doing it and it’s not easy going through 350-plus calves and assessing each of them in a timely manner,” Vander Waal shares noting that overall, he is happy with the purchase.

In Kewaunee, Wis., Shawn Miller at Pagel’s Ponderosa is another testament to technological benefits in the calf management role.

“Technology makes you think differently and teaches you to approach situations differently,” he adds. “A once difficult task now is as simple as just a few keystrokes.”

Advance Dairy Farm Profitability
Maximizing dairy farm profitability through adept data stewardship and cutting-edge technology is imperative. By leveraging technological insights and solutions, dairy producers can make informed decisions that align with the industry’s future and seamlessly integrate them into daily operations.

In the 2025 Farm Journal State of the Dairy report, nearly a third of dairy operations surveyed intend to invest in technology such as heat and health monitoring detection systems, parlor automation and updates, or data analytics to monitor and capture efficiency opportunities within their operations. Between 24% to 32% of our respondents shared they intend to invest across at least five areas of technological focus in the coming years.

The dairy sector stands on the brink of a digital revolution. Embracing data accuracy and technology not only enhances farm profitability but also equips producers to meet the challenges and opportunities of a rapidly advancing industry.

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